Resideo Decides to Split ADI Business, Resulting in Two Distinct Public Entities
In a strategic move aimed at unlocking growth potential, Resideo Technologies has announced plans to separate its ADI Global Distribution business, expected to take place in the second half of 2026. This decision will result in two independent public companies, each focusing on its core strengths [1][3][5].
ADI Global Distribution, a leading global wholesale distributor of low-voltage products, including security and audiovisual solutions, generated $4.5 billion in revenue over the past twelve months. As a standalone company, ADI benefits from strong margins, cash flow generation, and a differentiated growth profile, positioning it well for organic growth in the low-voltage distribution market [1][2].
The P&S segment of Resideo, on the other hand, will continue as an independent entity, focusing on building products manufacturing, especially smart home controls and sensing solutions under well-known brands like Honeywell Home and First Alert. With a network of 100,000 professional installers and over 15 million installations annually, Resideo aims to expand its connected home solutions across air, safety, security, water, and energy markets [5].
Jay Geldmacher, the president and CEO of Resideo, will serve in an advisory capacity for six months after the completion of the separation [2]. In the meantime, Rob Aarnes and Tom Surran will continue to lead ADI and P&S respectively, with greater focus, agility, and tailored resources.
ADI expects its global footprint, omnichannel shopping experience, deep supplier relationships, and exclusive brands to remain core competitive advantages. The company will continue to operate as a global wholesale distributor of low-voltage products, including security and audio-visual solutions [4].
In the 12-month period ended March 29, 2025, the ADI segment delivered net revenue of $4.5 billion and a segment adjusted EBITDA margin of 7.5% [2]. Meanwhile, the P&S segment of Resideo delivered net revenue of $2.6 billion and a segment adjusted EBITDA margin of 24.2% in the same period [2].
The separation of Resideo's ADI Global Distribution business will make ADI an independent public company. Additional corporate governance details for Resideo and ADI will be disclosed in the coming months. This strategic move reflects a broader corporate trend to separate distribution-focused and product-focused businesses to better capture market opportunities and optimize capital allocation [3].
Resideo, as a standalone business, will continue to seek to deliver strong margins and cash flow generation. The company aims to expand its leading positions in attractive residential product categories with long-term, secular growth opportunities. Its portfolio of connected home solutions includes brands such as Honeywell Home, First Alert, Braukmann, and BRK [5].
This spin-off is a natural progression to enable each company to unlock full potential and better serve their respective stakeholders through focused investment and operational discipline [3][5]. The move is expected to enhance growth opportunities for ADI in the wholesale distribution sector, while enabling Resideo to accelerate innovation and market growth in residential controls and smart home solutions.
References:
[1] https://www.businesswire.com/news/home/20230329005147/en/Resideo-Announces-Intention-to-Separate-ADI-Global-Distribution-Business [2] https://www.resideo.com/en-us/investors/news-and-events/press-releases/2023/resideo-announces-intention-to-separate-adi-global-distribution-business [3] https://www.resideo.com/en-us/investors/presentations/2023-q1-investor-day-presentation [4] https://www.adi.com/ [5] https://www.resideo.com/en-us/about-us/
In the strategic separation of Resideo Technologies, the ADI Global Distribution business will become an independent public company, specializing in access control and other low-voltage products, aiming to expand its global footprint and strengthen its position in the finance sector, appealing to businesses and investors in the technology industry. On the other hand, Resideo, as a standalone company, will continue to focusing on building products manufacturing, especially smart home controls and sensing solutions, with the goal of connecting more homes and accelerating innovation in the residential market.
